Consider the Following Transactions

question 309

Essay

Consider the following transactions. How would they be entered in the U.S. balance of payments accounts?
a. A U.S. citizen purchases a shirt produced in Mexico.
b. A bank in Mexico City purchases a U.S. Treasury bond.
c. A U.S. company buys an office building in Mexico City.

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Definitions:

Arousal Theory

The theory suggesting that people are motivated to maintain an optimal level of arousal for their best performance.

Homeostasis

The regulatory process by which biological systems maintain stability while adjusting to changing external conditions.

Drive Reduction

A theory suggesting that motivation arises from the desire to reduce physical needs, such as hunger or thirst, thereby maintaining homeostasis.

Physiological Need

A physiological need is a basic bodily requirement that humans must satisfy to maintain health and survival, such as the need for food, water, and sleep.